Putin said he gave instructions in October, in particular to specify the energy consumption forecast, to work out a number of normative acts stimulating power industry development and to simplify the permissive procedures at all stages of investment projects' implementation.
"I want to note: almost nothing has been done. There are implementation plans, but there is no final implementation on any item," Putin said, urging the issues be addressed seriously.
However, Putin said the government has done much to develop the power industry. "A number of government programs have been adopted... and WGC-5, which launched an IPO, collected some $0.5 billion, and the result exceeded the expectations greatly," he said.
He also said the 2007 budget envisions the biggest investment for the last 16 years - 45 billion rubles ($1.7 billion) for power industry development.
"Nevertheless, the measures being adopted are not enough," he said.
Prime Minister Mikhail Fradkov earlier said the power industry is hampering Russia's economic development, and that the government should step up its efforts to resolve the sector's problems.
"The power industry is hampering the country's economic development," he said. "We cannot continue to keep silent over this. The government must help [electricity monopoly UES CEO] Anatoly Chubais resolve [the sector's] problems."
Chubais said last month the company will consider reducing the volume of electricity exports during the coming winter to cover the domestic energy shortfall.
A cold spell that hit Russia last winter put a serious strain on the country's power grid, and rising energy consumption this year created a generating capacity shortfall.
"An extremely difficult situation is currently developing in Russia with the shortfall in power capacity," Chubais said. "Given this situation, we are forced to take measures to make maximum use of existing capacity during the autumn-winter [consumption] peak."
Ukraine's energy ministry proposed in late September helping Russia cover its electric power deficit with the spare capacity of its power plants, particularly in the Krasnodar Territory in southern Russia that borders on Ukraine, in exchange for Russian natural gas.
Russia's power sector has undergone radical changes in recent years aimed at increasing the efficiency of power plants and developing the industry by attracting investment. During the restructuring process, specialized structures were created in place of the old vertically integrated companies.
